Tax Reform Bills: Northern Senators Call for Suspension

 

The controversy surrounding Nigeria's proposed tax reform bills has escalated, with northern senators, lawmakers, and interest groups opposing the legislation. 

Call for Suspension: Northern senators, representing both ruling and opposition parties, have demanded a halt to further action on the bills, citing potential adverse effects on northern states. They argue that the bills require a thorough review by tax policy experts and extensive consultation with stakeholders.

Concerns Raised:

Critics claim the bills are being rushed without proper deliberation.
Northern lawmakers oppose the proposed 60% derivation formula for VAT distribution, which they believe disproportionately favors states like Lagos while disadvantaging consumption-heavy northern states.

Public Outcry:

The House of Representatives has suspended debates on the bills following widespread criticism from religious leaders, governors, traditional rulers, and the general public.

A rowdy session in the House ensued after a lawmaker from Ekiti expressed support for the bills, reflecting the contentious nature of the debate.

Presidential Stance:

President Bola Ahmed Tinubu has directed the Ministry of Justice to collaborate with the National Assembly to address concerns.
The government assures that the reforms aim to ensure fiscal stability and are not intended to impoverish any region. 

Sectoral and Regional Opposition:

The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) warns that the reforms may stifle growth in the oil and gas sector.
The Coalition of Northern Groups (CNG) describes the reforms as potentially exacerbating the economic challenges faced by Nigerians, particularly in northern states.

Next Steps:

The Senate Committee on Finance will conduct public hearings to gather input from experts and stakeholders.
Northern lawmakers and their governors are expected to intensify their push for broader consultations before the bills are considered further.

The debate highlights regional disparities, economic implications, and governance challenges tied to fiscal policies in Nigeria. Critics urge a more transparent and inclusive approach to tax reform.